Clean Energy Transition Guidance

Baroness Jones of Moulsecoomb Excerpts

Tuesday 8th June 2021 Lords Chamber

[Baroness Bloomfield of Hinton Waldrist (Con)]

There are a number of exemptions from this, one of which is providing support and promoting exports that improve the efficiency, health and safety, and environmental standards of existing assets. We will also support projects that assist with the decommissioning of existing fossil fuel assets and support gas power where it is part of a credible emissions-reduction plan, in line with the Paris Agreement. This goes back to the question from the noble Lord, Lord Grantchester, on how we will evaluate these projects. The investment must not delay or diminish the transition of that country to renewables and there must be no risk of it becoming a stranded asset due to climate change factors.

[Baroness Jones of Moulsecoomb (GP)]

Is it not slightly hypocritical of our Government to pontificate on this issue when they are funding, through the British taxpayer, a fossil fuel plant project in Mozambique?

[Baroness Bloomfield of Hinton Waldrist (Con)]

The Mozambique project is one of huge controversy. It was supported by UK Export Finance in July 2020 under previous policies and would not be approved today. It has now contractually committed to that support. UKEF will continue to monitor that situation closely. All support provided by UKEF has been in line with the scope of the new policy since March, which ends new direct financial or promotional support for the fossil fuel energy sector, other than in the limited circumstances I have outlined. It aligns support with clean energy.